Your 401(k) or 403(b) contributions are automatically deducted from your paycheck each pay period. Typically, you can choose a percentage of your salary or a fixed dollar amount to be taken each pay period. For pre-tax contributions, this money is taken out before taxes are withheld from your paycheck. Roth contributions are deducted from your paycheck after taxes.
Once contributions are in your retirement plan account, the money is invested based on the investment fund(s) you selected, or the default pre-set options provided by the plan.
Many employers will match some of the funds you contribute to your retirement plan, though it is not required for employers to do so.
Retirement plans have rules for withdrawals. For most plans, you cannot withdraw funds until you reach age 59 ½. For early withdrawals before age 59 ½, there may be taxes and penalties. Some retirement plans allow loans or withdrawals for financial hardship.
For more information about your plan, reach out to the SMARTMap team or contact your Recordkeeper.